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I didn't know income had anything to do with real estate.
invite response
2013 Jan 16, 10:27am 3,851 views 7 comments
Comments 1 - 7 of 7 Search these comments
inflection point
2013 Jan 16, 1:07pm
Perhaps you have never lived on a budget then. The thought is that you have a fixed wage, lack of interest income dur to ZIRP, larger energy, food, and helath care bills. That means the part of the pie left to buy a house is less.
Tenpoundbass
2013 Jan 18, 2:21am
In other words, most are losing purchasing power. This can be in the form of college education, healthcare, food, energy, or even housing.
It's sheer negligence and dereliction of duty. Plain and simple.
Here's a comment from a study on the ineffectiveness of SNAP...
One aspect of the program the report says is inadequate is the government's response to rising food prices. The researchers found a 16-month lag between when the government assesses the cost of food and when it adjusts benefit amounts to accommodate price hikes.
When we allow investors to manipulate our Energy prices, everything else becomes an incidental casualty. Besides the fact that even food commodities are being hedged by the investors, to make them fat and rich while the cost of those goods soar through the roof.
PockyClipsNow
2013 Jan 18, 2:32am
Income doesnt matter only permaZIRP matters now.
In 20 years your grandkids wont believe u ever earned 6% from a bank account or CD they will be buying up rental homes just to get a 1% return.
Income doesnt matter only permaZIRP matters now.
In 20 years your grandkids wont believe u ever earned 6% from a bank account or CD they will be buying up rental homes just to get a 1% return.
I'd happily accept a 1% return on everything, if we had sound money and zero inflation. The problem is that Helicopter Ben wants us to earn 0.01% on our savings while the value of that savings is shaved off by 2% a year.
I'd happily accept a 1% return on everything, if we had sound money and zero inflation. The problem is that Helicopter Ben wants us to earn 0.01% on our savings while the value of that savings is shaved off by 2% a year.
If only life was that good.
The Fed is trying for a higher inflation rate, perhaps 30% per decade or 2.7% per year.
zzyzzx
2013 Jan 21, 4:14am
while the value of that savings is shaved off by 2% a year.
I'm pretty sure that it's more than 2% per year.
Americans are spending more money on a variety of items adjusting for inflation. In other words, most are losing purchasing power. This can be in the form of college education, healthcare, food, energy, or even housing.
and have been saving less for the long term.
http://www.doctorhousingbubble.com/inflation-adjusted-home-prices-united-states-costs-of-inflation-in-housing/
"Adjusting for inflation, household income is back to levels last seen in the 1990s. So in real terms, Americans are spending more money on a variety of items adjusting for inflation. In other words, most are losing purchasing power. This can be in the form of college education, healthcare, food, energy, or even housing. This is an important trend to understand because it highlights why the Fed has so aggressively pushed interest rates lower to make up for this lack of real income growth."
#housing